Read this article from the Dayton Daily News and share your thoughts about adjustable rate mortgages and if Ohio should outlaw them.
Adjustable rate mortgages part of foreclosure crisis
'Teaser rates' start out low then increase dramatically. 200,000 Ohio families could be affected in 2007-08.
By William Hershey, Dayton Daily News Staff Writer
COLUMBUS — They're called "teaser rates" and they could make Ohio's mortgage foreclosure crisis even worse in coming years.
The loans are for adjustable rate mortgages (ARMs) with low, fixed interest rates for the first two or three years. After that initial period, the rates increase, as often as every six months, so that monthly mortgage payments grow dramatically, according to a report released Thursday by the Coalition for Homelessness and Housing in Ohio.
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